Greece: New Aid Hangs in the Balance, Outlook 'Uncertain'

Experts representing Greece's international lenders have reached an agreement with the Greek authorities in Athens on further reforms the country is required to implement in return for new bailout funds, paving the way for euro zone finance ministers meeting later on Monday to give their blessing to another tranche of aid for the country.

The "troika" of lenders - the European Union, European Central bank and International Monetary Fund (IMF) threatened last week to hold back a further 8.1 billion euros ($10.5 billion) of aid unless Greece met its bailout obligations by Monday. Particularly, an impasse over Greece's delay in implanting a transfer or dismissal of 12,500 state workers in June had weighed on negotiations with the government.

The experts nevertheless kept the pressure on the country on Monday, warning that while important progress continues to be made, policy implementation is behind in some areas.

"Policy implementation is behind in some areas. The authorities have committed to take corrective actions to ensure delivery of the fiscal targets for 2013-14 and achieve primary balance this year…they have also committed to take steps to bring public administration reforms back on track, such as by completing staffing plans by end-year," the statement said.

"The mission and the authorities agreed that the macroeconomic outlook remains broadly in line with program projections, with prospects for a gradual return to growth in 2014. The outlook remains uncertain, however," the commission said in a statement.

The Eurogroup of finance ministers from the 17-strong euro area will now decide whether the country has done enough to receive the last substantial tranche of aid. The IMF's Managing Director Christine Lagarde will attend the meeting.

"The Eurogroup and the IMF's Executive Board are expected to consider the request for approval of the review in July," the statement added.

The president of the eurogroup, Jeroen Djisselbloem, said ahead of the meeting that the Greek aid could be paid in installments, Dow Jones reported, echoing a comment made last Friday by the Vice-President of the European Commission, Olli Rehn.

This would enable the euro zone to maintain pressure on Greece to carry out reforms.